Multirating Performance Reviews

Jocelyn Bérard, M.Ps. MBA is the Vice President of International Leadership and Business Solutions (Vice-président Leadership et Solutions d’Affaires  —  Internationale) at Global Knowledge Canada

More companies are using 360-degree multirater tools for performance management. These are surveys completed by those around you — supervisors, peers, direct reports, and sometimes vendors and customers. There are two major problems with this approach. First, it’s too time consuming. Especially when several performance appraisals are due at the same time, it becomes a logistical nightmare. But more importantly, when such surveys are linked to salary reviews and real money is on the line, raters’ feedback tends to be skewed. Instead of receiving objective feedback related to performance and development, views can be tarnished by prejudice. Multiraters are excellent tools for developmental purposes, and that’s exactly how companies should use them — not for performance management.

The good news is Canadian organizations are starting to recognize these performance-rating pitfalls. Over the past 10 years, an increasing number shifted to a business-oriented performance management model — one that emphasizes shared ownership between employee and manager, aligns individual goals with corporate objectives, and engages employees to perform at higher levels.

In short, the modern performance management model hardwires individual employee performance into the company’s business plan.

Best Practices

Best practices in performance management appear intuitive to those with a comprehensive view of one’s organizational structure.

They are in brief:

  • Identify senior executives as system champions
  • Align performance management to support business goals and drive results
  • Cascade accountabilities to all levels
  • Promote shared ownership
  • Have line management drive the system
  • Train managers and employees in the skills they need to realize the benefits
  • Show employees how to establish measurable individual goals through planning
  • Roll out a unified system consistently across the entire organization
  • Manage the system as a process, not a one-time event
  • Link performance management to other human resources systems
  • Evaluate system effectiveness regularly and identify process improvements

Related Courses
Performance Management
Align for Results

Republished with permission from CA Magazine.


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